In Phase I we exceeded all key objectives. We demonstrated in both pervaporation and vapor separation the combination of high membrane permeation and high membrane separation when evaluating isopropyl alcohol (IPA)-Water separation. Membrane stability, which had been concern of reviewers, was shown to be excellent and far superior to other commercial membranes. CMS membranes were shown to be stable up to 130[unreadable]C and over the whole compositional operating range. Economic evaluations showed the CMS membranes to have in excess of 80% capital savings compared to existing drying processes. In addition to work on IPA-water, two other pharmaceutical solvents were successfully evaluated. Leaching studies have shown the CMS membranes to be stable. Based on results and commercialization analysis the CMS system is seen as a platform technology. Significant opportunities exist in pharmaceutical solvent recovery enhancing chemical reactions, chemical industry solvent recovery, manufacture of fuel grade ethanol and stabilizing industrial esters. With many opportunities, a large number of industrial and pharmaceutical companies as well as leading researchers have committed to actively participate in this program. This participation will enhance overall chances for commercialization. In Phase II we will first fabricate high flux composite membrane modules. Then we would focus our demonstration on IPA-water systems operating in pervaporation (PV) mode. Focus will be on PV since this is the simplest system for the end user. Once successful basic data on IPA-water in PV is obtained we will expand the evaluation to other pharmaceutical solvents and also evaluating membranes in the vapor separation mode. Additional upgrades will include modeling and system design to enhance overall purification; long term testing plus extended solvent leaching tests; develop enhanced membrane modules using commercial hollow fiber supports; building large skid for field testing and expanding our economic evaluation to show superior performance to alternative drying routes. Throughout this Phase II we will work closely with our industrial partners. This program develops a low cost, simple, process to recover pharmaceutical solvents. This will encourage solvent reuse which is environmentally attractive and cost effective. The process will also keep potential biological contaminants out of the environment. [unreadable] [unreadable] [unreadable]